NEW YORK, July 23, 2026, 2:12 p.m. EDT — M&T Bank NYSE:MTB has drawn on borrowings to fund rising loan demand, following a quarter in which the regional lender posted record earnings.
- The main NYSE session was underway, with M&T shares last at around $245, off 2.2%.
- Average loans increased by $3.0 billion from the previous quarter, while deposits decreased by $652 million.
- According to MarketBeat’s compilation of 22 ratings, the consensus is Hold with an average price target of $251.43.
M&T Bank Corporation NYSE:MTB reported its highest-ever quarterly earnings, with increased reliance on borrowed funds. Average borrowings surged by $4.0 billion compared to the previous quarter. This change in the balance sheet could be more significant than the earnings surprise.
Average loans increased to $141.4 billion, up from $138.4 billion. Average deposits declined to $163.5 billion compared with $164.2 billion. Loan growth was recorded in all major categories.
Reported averages show loans standing at 86.5% of deposits. That figure compared with 84.3% in March and 82.9% a year earlier. Borrowings represented 12.7% of deposits, rising from 8.7%.
The shift in funding is apparent over three quarters:
| Balance-sheet measure | Q2 2026 | Q1 2026 | Q2 2025 |
|---|---|---|---|
| Average loans | $141.4 billion | $138.4 billion | $135.4 billion |
| Average deposits | $163.5 billion | $164.2 billion | $163.3 billion |
| Average borrowings | $20.8 billion | $16.8 billion | $14.3 billion |
| Loans/deposits | 86.5% | 84.3% | 82.9% |
| Borrowings/deposits | 12.7% | 10.2% | 8.7% |
| Net interest margin | 3.70% | 3.70% | 3.62% |
| CET1 capital ratio | 10.19% | 10.33% | 10.99% |
*Based on average balances provided by the company.
Early estimate from the company.
Borrowing climbed due to greater use of Federal Home Loan Bank advances, senior notes, and securitizations. Deposit costs declined by two basis points to 1.95%. However, the overall cost of interest-bearing funding increased four basis points to 2.36%. The net interest margin remained steady at 3.70%.
The company’s earnings performance stayed robust. Non-GAAP net operating EPS came in at $5.35, beating the MarketBeat projection of $4.66. Revenue reached $2.53 billion, ahead of the expected $2.46 billion. The efficiency ratio dropped to 52.8%, down from 58.3%.
Chief Financial Officer Daryl Bible stated that “M&T generated record earnings per share in the second quarter.” Net charge-offs dropped to 0.23% of average loans, while nonaccrual loans decreased to 0.84% of total loans. M&T Bank Corporation
Outlook shows narrower spread economics. M&T projects its full-year margin to be in the upper 3.60% area. Net interest income is anticipated to fall within the lower end of the $7.2 billion to $7.35 billion range.
Analyst opinions illustrate the ongoing uncertainty. According to MarketBeat, there are 14 Hold ratings, seven Buys, and one Sell. The consensus price target stands at $251.43, indicating a potential upside of roughly 2.5% from Thursday’s closing price.
Brian Foran, an analyst at Truist Securities, reiterated a Hold rating this week. He increased his price target to $268 from $230, suggesting an approximate 9.3% potential gain.
Capital poses a further constraint. M&T bought back $465 million in shares over the quarter. The initial CET1 ratio dropped by 14 basis points to 10.19%. Executives target a position at the lower boundary of their 10%–10.5% range.
Risks persist. An accelerated withdrawal of deposits may push funding costs even higher. Should credit quality deteriorate, provisions would rise and capital flexibility would decline.
The upcoming challenge concerns deposit growth. Executives anticipate higher deposit levels in the latter half. Continued improvement would enable loan expansion to aid profits while reducing pressure on margins.
